Why Shares of Conduent Are Down Today

Shares of Conduent (NYSE: CNDT) dropped 20% on Friday after the business services company backed away from divesting assets. It also reported fourth-quarter results that missed expectations and warned of a revenue decline in 2020.

After markets closed Thursday, Conduent reported fourth-quarter earnings of $0.18 per share, short of the $0.20-per-share expectation. Revenue for the quarter came in at $1.099 billion, slightly above the $1.08 billion analysts had expected.

2019 was a tumultuous year for the outsourcing specialist. Former CEO Ashok Vemuri, who guided the company through its 2017 spinoff from Xerox Holdings, stepped down in May amid a battle with activist investor Carl Icahn. But the stock got a boost in November when new CEO Cliff Skelton announced a strategic review, pledging to explore opportunities to divest assets that he said could command a premium in a sale.

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Source Fool.com